Buyer be aware -- of clout in housing market

"The power is in the buyer's hands," said Holly Slaughter, consumer-experience expert at RealEstate.com. "Unless it's the Hope Diamond, everything is negotiable."

But it's been a seller's market for years. Do buyers know the clout they now wield?

"Most of them do, really," said Bari Shor, an agent with Prudential Fox & Roach in Philadelphia's Center City neighborhood. "It's the sellers who are still a little behind the times, who don't realize that there are a gazillion houses for sale and buyers have lots to choose from."

The reality is a sort of Twilight Zone between a seller's and a buyer's market.

"We're at a point where sellers realize that their properties aren't moving, but they're not yet ready to lower prices," said Alison Rogers, a licensed saleswoman with D.G. Neary Realty in New York City who also writes the Diary of a Rookie column for Inman.com. "So it may be easier for a buyer to ask for a credit on closing costs, or to ask for something else that sweetens the pot."

With so many houses for sale, Slaughter said, "the bottom line is that as a buyer you have the luxury of time to make an educated decision."

Instead of writing a check at the door, "you can take a long, leisurely walk-through, digging deeper into the history of the house, and all of the nooks and crannies," she said.

"Don't get too complacent," he said. "Just because prices have come down in some regions, a terrific house is going to draw lots of attention -- and possibly multiple offers.

"While buyers in a buyer's market often can take an extra breath, be ready to pull the trigger when you know the place would be perfect for you," said Kelly, whose most recent book is "Real Estate for Boomers and Beyond" (Kaplan, $19.95). In a case like that, "trying to create a bargain through negotiation is often a house lost."

Whatever you do, don't show your hand.

"When you shop for a car, the rule is to shop with a poker face, so the salesperson can't read your emotion and take advantage of you," Slaughter said. "A home purchase is, of course, much more emotional, and trying not to show that emotion is much harder.

"Not only are you going to have show no emotion, you're going to have to develop the strength as a buyer to walk away from a deal that isn't in your favor," she said.

When it comes to financing the home you buy in this buyer's market, it pays to shop around, too.

"Mortgage rates are going up, but not as fast as everyone expected," she said.

"Go on the Internet, fill out as many forms as you want, and start getting quotes in writing. Go to your credit union, and check out your local bank.

"People seem to spend more time shopping for a car loan than for a mortgage," she said.

As more houses hit the market -- Philadelphia's inventory has grown about 60 percent in the last year -- more savvy sellers are willing to throw in some goodies to get their houses sold.

"Ask for the lawn furniture, the washer and dryer," Slaughter said, "but make sure you tell your real estate agent to get all of this in writing, because you want to make sure that what was promised is delivered."

Some builders are offering buyers incentives, just as they did in the slow days of the mid-1990s.

"One developer in Chelsea is offering a $5,000 credit on closing costs for one-bedroom condos," Rogers said of the New York market. "Two months ago, I saw a one-bedroom co-op where the seller was offering the queen bed, antique dresser, and living room couch for a separate price. If we made an offer on that place today, we'd ask for the furniture to be thrown in."

But buyers should exercise reason as they state their terms, Slaughter said.

Chicago-based author and radio host Ilyce Glink seconded that recommendation.

"Don't kill the deal by trying to nickel-and-dime the seller after you've agreed to the deal," said Glink, whose books include "Ten Steps to Homeownership (Random House, $15). "If the inspection report comes back with a few negative items but you still want the house, ask for specific fixes all at once. Don't dole them out day by day, until the seller figures you'll never be happy and kills the deal."

In the hot market, inspections were often skipped, although Shor and other agents refused to let their buyers do it.

"It was never an option," Shor said.

There were provisions in the agreement of sale, however, that were designed as a compromise, she said. Option 1 was "buy it as is," while the second option was to accept the property but with a substantial deductible in the sale price in case the inspection uncovered serious defects.

"It was to make the agreement of sale more palatable in that market," Shor said.

Recent sales data are available from your buyer's agent, so "make sure you do your homework," Glink said.

"You can't just expect the seller to roll over and play dead," she said. "But if you look at all the homes on the market in an area, and learn as much as you can about the seller's needs and wants, you should be able to make an offer that is either somewhat or significantly below the list price."

That's why you need to work with an agent who really knows the area in which you're looking, Glink said.

"While buyers often think they can go it alone, if you don't know what other, similar homes have sold for, and in how much time, you won't know how to construct a serious offer," she said. "Work alone and you could pay a lot more than you have to for the house."

Added Slaughter: "There are so many things a buyer can do in this market that he or she couldn't do in the previous one. Time is no longer of the essence."